Current trends in agricultural insurance market operation in Ukraine

Abstract

Creation of a strong agricultural insurance market in Ukraine as an effective resource and instrument to strengthen the agrarian sector of economy from the point of view of minimizing the risks affecting the commercial performance is one of the key stages in the development of the Ukrainian insurance protection system in the agrarian sector of economy. At the same time, the Ukrainian agricultural market is still in the stage of formation and develops randomly, with no well-defined development strategy and proper state support. The aim of the paper is to assess the current trends in the operation of the Ukrainian agricultural insurance market. The authors study the peculiarities of the formation, the current stage of functioning and further development of the agricultural insurance market in Ukraine. The results of the study reveal the principle of the structural formation and functional characteristics of the agricultural insurance market services in Ukraine – its mono-component was discovered – in view of the fact that it is represented only by the system of insurance of agricultural crops and perennial plantings (with the domination of field crops) and the optional functioning of the latter – one third of the market forms formal compulsory insurance in the context of state finance programs for farmers. The authors summarize the complex of reasons that keep the development of the Ukrainian agricultural insurance market grown and systematize its peculiarities that are typical for this stage of the agrarian sector development. Researchers note the sufficient development of agricultural insurance market tooling in Ukraine at this stage – the market uses a sufficient set of insurance products that according to their qualitative characteristics meet international standards in terms of both classical and parametric insurance schemes. Thus, the conducted research allowed to form the directions for the development of the agricultural insurance market in Ukraine. The key one among them was its further institutional development within the framework of private-public partnership, which is proved by positive international experience and stimulate interests’ unity of this market participants.